WAYS OF IMPROVING THE DEVELOPMENT OF READJUSTMENT INTERNAL FINANCIAL SOURCES OF FOOTWEAR ENTERPRISE

Abstract

A significant deterioration of financial and economic performance of companies which are making shoes and unresolved problem of determining the prospects of stabilization and further development of such enterprises have been kept under observation. Thus,the article made a special focusonrestoration and strengthening of the financial stability of the company – financial reorganization,referring to financial stabilization in a crisis situation.The ways of creating internal sources of financial reorganization as a guarantee elimination of insolvency and the fundamental basis of the financial strategy to accelerate growth of the companyhave alsobeen taken into consideration.

The probability of company’s bankruptcy has been evaluated in the article and the ways of improving the development of its readjustment internal financial resources have also been identified. The performance of the company has been characterized in this research, in particular focused on profitability as indicator of ensuring the stability of the company. A range of measures, based on the specificity of company’s activities and foreign experience, for improving  the rehabilitation of the entity have been proposed in the article.

As far as we concerned, the company needs to mobilize internal financial resources for readjustment, as outsourcing is inappropriate, because company has owned long-term liabilities since the reporting period. The results of research have shown that JSC «Carlo Pasolini Trading» should use the main implementingFinland companies’ principle of the reorganization, as its aim is to restore solvency within existing resources, its reserves, restructuring receivables and losses carry through sanation revenue and income from other sales. Furthermore, the reduction of the share capital should have been done by reducing the nominal participation in the authorized capital of the largest shareholders.